Making sure your bank account is nearly empty before filing

[anonymuse]

I get paid once a month. Most bills are monthly while others are every other month.

I'll have a little in my bank account prior to filing but don't exactly want to spend it on essentials that I can put off.

I figure I'll take out a money order for the final payment ($200) for my lawyer that I have to give to him at the 341 meeting, but there still might be some left. (I'm targetting a Nov 1 filing.)

Is it alright to pay a little forward on utilties? (For example, pay $125 to a $100 phone bill and $200 to a $175 gas/electric bill--spread it out over a few bills).

There's things I need like new tires that I need to save up for first (it will snow here this week) so, even though I need to go to the dentist, I don't want to put out that money before I get tires which is a higher priority item right now.

[FilingOnMyOwn]

Aren't tires a bigger priority than paying ahead on utilities?

[NASCAR20FAN]

Why is that soo important? If it is such a big deal that you have no money in your account when you file, and they do in fact check. Will they not inquire as to why the withdrawls were made and where the money is?

[SinkingFast]

I think I would definitely buy the tires first, Anon. Then see what extra you have that you need to dispose of. If you run out of options, there's always extra canned goods, toilet paper, paper towels, and other household items that won't spoil.

Make sure your attny knows when payday is so that he/she will file before that. When we went to sign our petition, there were a few minor changes that needed to be made. Updating of debt figures. Nothing major. The paralegal said our Petition would be filed by Friday. I reminded her that Friday was payday. We didn't have any Exemptions to cover Hubby's paycheck. So the paralegal said our petition would definitely be filed on Thursday.

[SinkingFast]

Why is that soo important? If it is such a big deal that you have no money in your account when you file, and they do in fact check. Will they not inquire as to why the withdrawls were made and where the money is?

You have to have Exemption to cover cash in your bank acct. The less cash, the easier it is to cover.

As to checking what we said we had in the bank on filing day,........ We have to take a print out of our bank acct statement showing our balance on Filing Day with us to the 341.

Our statement shows bills paid and groceries and gas bought in advance of our filing.

[pink_amulet]

Hubby gets direct deposit, we were worried cause we were filing the day after he gets paid (had an appt with lawyer)....so on the day we filed we had over grand in the bank. However it didn't matter cause it was all accounted for (bills which weren't really due, but we paid early). The courts NEVER asked, and our lawyer said don't worry about it.
Our exemptions we had left covered our income tax check. I was so nervous i too had printed out out bank statements, and our lawyer said.......if they don't ask..don't show it.Then again we had a GREAT trustee, so easy going and nice, so it was SO much easier !!!

[lrprn]

We get paid every other week and figured things carefully to pay bills, grocery shop, etc to ensure our account was as low as possible on our planned filing day - the day before our paydays. (Our lawyer suggested under $500 if we could manage it.) Since we were able to plan ahead, we filed Ch 13 with about $250 in our account.

The way our lawyer explained it, bk is a frozen snapshot of your finances on the day you file. In case you have a trustee that goes after you for some reason, it strengthens your position when you don't have very much money in your accounts on filing day.

[anonymuse]

Aren't tires a bigger priority than paying ahead on utilities?

But I won't have enough saved for tires yet, that's the point. So if I pay ahead, that's extra for the next month to save and then I should have enough saved.

[razorguns]

good advie. bk's always look for people who make reallly dumb mistakes. like have $10g in their bank account, and only $25k debt. They also figur ein income, montly expenses, etc. So even if u took it out - if it's clear you can save up thousands easily - it'll still bite you.

but yeah having liquid cash aren't definately wont help.

r

[anonymuse]

CO does not have any exemption for cash on hand nor a wild card exemption.

[InLimbo]

Our lawyer wanted to file before the end of September (he said as the new laws got closer to its anniversay date - October-that it would be more likely to have your case reviewed after discharge). My hubby actually got paid the day we filed (around 1000 in the bank that morning) but on the way to the lawyer's office, we stopped by an ATM and withdrew the monies we needed for the lawyer and left around 200.00 in our checking. Our lawyer said there was no problem in doing that because we had to have the money to pay our lawyer.

[FoolAndHisMoney]

Our lawyer wanted to file before the end of September (he said as the new laws got closer to its anniversay date - October-that it would be more likely to have your case reviewed after discharge). My hubby actually got paid the day we filed (around 1000 in the bank that morning) but on the way to the lawyer's office, we stopped by an ATM and withdrew the monies we needed for the lawyer and left around 200.00 in our checking. Our lawyer said there was no problem in doing that because we had to have the money to pay our lawyer.

They review it after discharge? I know after the anniversary they will be auditing 1 in 250 cases, but I didn't think it was after discharge.

[aa06a47]

CO does not have any exemption for cash on hand nor a wild card exemption.

Since CO doesn't have a wild card or cash on wild card exemptions, start taking out enough money extra via atm each week up to the time you file to make sure you can show on the date you filed you had 10 bucks or whatever in the bank account. Since you filing chapter 7, there is a chance the trustee may go after money from the bank account.

I would either just keep the cash in a safe place or if you don't feel comfortable with not claiming the cash, then I would spend it on groceries or like you said pay extra on your utilities.

[macsen]

Something else to keep in mind. I just had my 341 last Friday and I'm paid once a month...the trustee asked how much money is due to you. I filed on Aug. 29th and was paid two days later. Lot of money owed that I had to disclose to the trustee...Ouch! I think that should be considered when planning a date to file. Also, the trustee asked how much vacation my wife and I were entitled to and that was factored in as well. The amount not covered by the exemption is now going to the trustee next year (well, if we successfully satisfy the U.S. Trustee enquires and are allowed to go Ch. 7). He was entitled to 2/3 of our tax return and he said he'd take the rest owed from the balance.

*edit* BTW, I'm in CO. as well so I assume this will likely be something you'll encounter as well.

[anonymuse]

I only accrue 1.25 days a month and I've pretty much used that up each month on medical issues, so that shouldn't be a problem. I get paid once a month and that's the money "owed" to me--I earn it to pay the bills--so I don't anticipate any issues.